Working capital includes all of the following EXCEPT
A) cash.
B) accounts receivable.
C) accounts payable.
D) inventories.

Question

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities. Accounts payable is a current liability, not a current asset, and therefore is not included in working capital. Cash, accounts receivable, and inventories are all considered current assets and are included in the calculation of working capital.

Working Capital Includes All of the Following EXCEPT